WHAT IS ERP IN TRANSPORTATION?

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shay 5n2EemBYQm4 unsplash

Introduction

ERP, or enterprise resource planning, is a software application that integrates multiple processes in your company into one unified system. For example, an ERP system can integrate your sales data, accounting data, and shipping data in one place so that everyone is working within the same software framework and database. The idea behind ERP is to make your company’s operations more efficient by connecting every employee and streamlining all processes into one shared network.

A sound ERP system will give you access to information in real-time. It will allow you to have a clear picture of what’s going on in your business at any given time. At Go Freight Hub, we use an ERP system that streamline processes and automate most major and minor tasks, such as sending emails to customers when their orders ship out or creating invoices automatically after an order has been placed.

Who Uses ERP Systems?

Companies with many employees, departments, and clients more commonly use ERP systems. However, they can work well for any company that needs a tracking and communication system. An ERP system (Enterprise Resource Planning) helps consolidate the many dispersed and sometimes detached units, functions, or business processes into one centralized database.

This consolidated structure gives you complete control over every function of your business, allowing you to make adjustments where needed. Enterprise resource planning applies not only to manufacturing companies but also to service-based organizations that deal with a large number of customers, stakeholders, and supply chain partners.

3 Key Advantages of ERP in Transportation

The first thing you need to do when considering if an ERP system is the best option for your company is to ask yourself two questions:

·  Are you finding it increasingly challenging to manage your operations from different places?

·  Do you want to cut back on costs and improve efficiency?

If you answered yes to either of these, an ERP may be the solution you are looking for. Following are three key advantages of ERP systems we discovered at Go Freight Hub while using it ourselves.

1) Improved Integration

Having all your systems under one roof can go a long way to improving integration with other technologies and internally between teams. By viewing the relationship between the data and processes more holistically, you’ll be able to make more informed decisions—and empower individual teams across departments and organizations to do so as well. When you are in control of your data, you have complete visibility into everything that happens across your organization.

2) Increase Visibility into Data

By incorporating an ERP system into your transportation and logistics operations, you will gain access to an immense amount of data that can help you better understand how your supply chain network operates. You will be able to see if there are any possible areas for improvement and make course corrections when necessary. This allows you to focus more on growing your business and saves you time, energy, and money by avoiding mistakes.

3) Save Time by Automating Manual Processes

At Go Freight Hub, we use ERP for fast and efficient supply chain management and view it as a method for speeding up processes that would otherwise be performed manually. Thanks to electronic data interchange (EDI) features, you can connect your business to others involved in your supply chain and cut out manual operations that waste time, energy, and manpower.

For example, suppose that your employees drive from one place to another with supplies or products in a trailer attached to their truck. In that case, an organization-wide ERP system could handle these data processing and data entry responsibilities automatically without any human interference—reducing errors and improving speed. Moreover, the ERP system will automatically place orders for the next batch when the inventory levels drop beyond a certain point, so that you do not have to count inventories manually or risk running out of stocks.

With these benefits in mind, forward-thinking transportation companies are moving toward digital solutions that can streamline their business processes and logistics functions, which lead to better returns on investment, cost savings, and improved customer satisfaction.

Conclusion

Using ERP solutions in logistics facilitates deliveries, sales, and other vital functions in transportation business. A sophisticated ERP software can help you improve reporting, business process improvements, decision-making, and data security.

Are you looking for the latest ERP transportation management system to support and grow your business? Trust Go Freight Hub to take control of your business operations with the latest cloud-based ERP systems tailored to your unique business needs and requirements. We offer customized ERP solutions for transportation businesses, including business process analysis, implementation and upgrade of the system, as well as professional consulting.

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